Myer To Pay First Dividend In Four Years, As Online Business Booms
Myer will pay a 1.5c per share dividend, its first in four years, as it posts a rise in sales, but a plunge in net profits.
During the six-month period ending January 29, 2022, Myer’s net profit dropped 24.7 per cent, to $32.3 million. This is despite sales leaping 8.5 per cent, to $1.52 billion.
Net profit, when adjusted for JobKeeper subsidies received in the same period in 2020, is actually up 55.2 per cent.
Net cash jumped by $16 million, to $217 million.
Myer shares jumped 13 per cent this morning, to a two-month high of $0.465.
“The half year results we have announced today demonstrate the strength and resilience of the business providing continued momentum for future growth,” CEO John King commented.
“The combination of our online platform and store network performed well in navigating the challenges faced during the period including disruptions caused by government-mandated lockdowns to mid-October, the emergence of Omicron in late December, and the mitigation of major supply chain disruption and staffing availability in early 2022.”
“Myer will pay a dividend for the first time in four years,” King continued, “demonstrating our confidence in the momentum being built as we move into the second half, with a return to sales growth in the first five weeks of second half with trade up 15.2 per cent and a strong platform of future initiatives that are yet to be delivered as part of the Customer First Plan.”
Online sales during the same five-week period King references were up 48.6 per cent, boding well for the retailer.
Myer’s online business is delivering exceptional growth, with sales increasing 47.5 per cent, to $424.1 million for the half.
Online sales now make up 27.9 per cent of all Myer sales, impressive growth, albeit somewhat driven by desperation as store closures crippled the brick-and-mortar sector.
“Our online business has grown nearly fourfold in the past four years and is now one of the biggest online retail businesses in the country,” King said.
“In key categories, our growth is significantly outpacing competitors, both multichannel retailers and online pure plays.”